"Financial Market conditions continue to stabilise. Use of the
RBNZ's special facilities, specifically for the purpose of accessing term
funding, has been low with New Zealand banks able to access funding from their
normal market sources. As a result, the RBNZ is removing the regular Tuesday
Open Market Operation which is the last remaining temporary liquidity facility
introduced during the financial crisis."

The regular Tuesday Open Market Operation (OMO) involves repurchase
transactions for maturities of up to three months. There has recently been
very little use of this facility and the RBNZ retains the ability to offer term
maturity dates at its discretion in its normal OMOs.

This change will take effect from 1 December 2010, with the final regular
Tuesday OMO scheduled for 30 November 2010. The RBNZ will be reviewing over
coming months the remaining measures initiated during the crisis , in particular
the range and credit quality of securities that are repo eligible in RBNZ
operations. Further detail will be announced on this in due course.

"These decisions have no implications for the stance of monetary
policy," Mr Spencer said.

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